1 Answer

A limit order let’s you set a specific price at which to buy or sell your coins.

Unlike a market order, a limit order will only execute when the coin’s price hits your the limit price you’ve set.

A limit order does not guarantee execution since the coin’s price may never hit the limit price that you set for the order.

Example: Bitcoin’s current price is at $8000. You set a buy limit order for 2 Bitcoin at $7500. Your order will stay open until Bitcoin’s price drops to $7500, at which point your order will execute and buy 2 Bitcoin. However, Bitcoin may rise in price instead and your buy limit order will not execute. It will just remain open for whatever period of time you set.

And YES. You should absolutely use limit orders. I almost never use market orders. I like to know exactly what I’m paying for or receiving for my coins.